California Business Leaders Address Economic Challenges

California business leaders addressing key economic issues.

News Summary

Business leaders gathered in Sacramento for the California Business Outlook event to discuss key issues affecting the state’s economy, including trade, tariffs, climate change, and retail theft. The conference provided a platform for dialogue on strategic planning amidst economic uncertainties, highlighted the importance of local chambers of commerce, and featured noted speakers discussing the implications of international trade and upcoming economic forecasts. Concerns were raised about job losses and vulnerabilities in small businesses due to rising operational costs and shrinking labor force.

Sacramento, California – Business leaders from across the state gathered in Sacramento for the California Business Outlook event to address pressing issues surrounding trade and economic challenges. The event featured discussions revolving around international trade, tariffs, climate change, and the ongoing problem of retail theft, highlighting the interplay between these factors and their impact on California’s economy.

CalChamber President and CEO Jennifer Barrera opened the conference with a focus on the importance of strategic planning amid increasing uncertainties in the economic landscape. The event received support from various organizations, including the Sacramento Host Committee, the California New Car Dealers Association (CNCDA), and the California Restaurant Association.

During the conference, twelve local chambers of commerce were honored for their commitment to business advocacy and adherence to California employment laws. These recognitions underscored the integral role that local businesses play in fostering economic resilience and compliance.

Lt. Governor Eleni Kounalakis participated in a fireside chat alongside Caroline Beteta, President and CEO of Visit California. Their discussion revolved around the implications of international trade and the effects of tariffs, emphasizing the interconnectedness of California’s economy with broader global markets.

Liane Randolph, chair of the California Air Resources Board, also contributed to the conference, engaging in an insightful dialogue moderated by Barrera. This session aimed to address California’s ongoing climate change initiatives and their implications for various industries.

Economist Dr. Christopher Thornberg provided an international economic forecast during the event’s lunch session, with an emphasis on potential challenges awaiting California’s economy later this year. Reports from UCLA Anderson suggest that the state may experience economic contraction, largely due to global tariffs and immigration policies impacting key sectors, leading to expected volatility and uncertainty in the latter part of 2025.

The state’s economic forecast also indicates slower growth than the national average for this year, with predictions of negative job growth in multiple quarters. Unemployment rates are anticipated to peak at 6.1%, with an average of 5.8% projected for 2025. These figures underscore the mounting economic pressure on California’s workforce, especially in the entertainment industry and the technology sector, both of which are seeing significant job losses.

The increase in tariffs instituted during President Trump’s administration has disrupted crop trading, delayed vital equipment purchases for the agricultural sector, and led to rising costs across various industries due to dependence on imported materials. Tariffs have specific implications for Southern California’s trade and logistics industry, where job opportunities and investment are suffering as a result.

Projections for the Port of Los Angeles indicate a decline in cargo volumes by at least 10%, with further decreases likely as businesses adjust to the changing landscape. Small and medium-sized businesses in California remain particularly vulnerable to these rising operational costs, raising concerns about their sustainability moving forward.

In response to the ongoing challenges, business leaders stress the necessity for robust strategic planning and support frameworks to maintain California’s economic strength. The state’s economy, intricately linked with Canada, is currently adapting through initiatives like a $5 million campaign by Visit California to attract Canadian tourists.

Additionally, economists are drawing attention to the critical issue of a shrinking labor force, which poses a significant challenge for future economic stability and growth. Addressing this issue is essential for safeguarding California’s position in the highly competitive landscape of regional and global economies.